Marketing

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Marketing Technology

• Topic introduction
• Overview and history
• Course approach

2
Why is the Internet important?

• Fast growth in its influence
• Accessed by marketers
• Expected by consumers
• Rapid and wide diffusion
• In domains (.tv)
• In hosts
• Lots of money involved
• Spending money to make money
• Spending money on goods and services

3
Implications in action
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Tracking Internet growth
5
Commercial implications of
Internet growth
6
A brief history

• Marketing and technology are linked
• Pre-industrial Age
• The Industrial Revolution
• Mass communications
• Radio
• Television
• The Information Revolution
• A digital economy
• Rise of interactive media

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A brief history

• The Pre-industrial Age (up to start of 19th
  century)

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A brief history

• The Industrial Revolution (1800s in U.S. To WW1)

Advance-Rumely's 1915 OilPull  (lightweight model
M,  8,750 pounds, 35Hp)
1912 Hackney Auto-Plow   (Turn Wheel to start
engine, 3-5mph)
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Just another technology

• Internet is the most recent technology
• A timeline
• Effects of technology on marketing action
• Affects types of products
• Affects types of communications

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Business
Technology Developments
name, .coop, .aero begin registrations
2002
Dot-com slowdown slows down
Napster suspends service
.biz, .info, .museum begin registrations
2001
First live online musical
Number of unique Web pages exceeds one billion
2000
1999
business.com sells for 7.5 million
Mr. Clean speaks online
Hackers cripple eBay, Yahoo!, eTrade, Datek, Cnn
with denial-of-service attacks
First full-service Internet bank
US Postal Service sells stamps online
business.com name sells for 150,000
1997
1999
1995
Online dial-up services provide Internet access
.com hosts outnumber others
First online shopping mall
1994
First commercial interest in Internet
Number of hosts exceeds 1,000,000
1992
CERN releases WWW
1991
1989
Number of hosts exceeds 100,000
1987
Number of hosts exceeds 10,000
Number of Internet hosts exceeds 1000 Domain Name
System introduced
1984
1975
First Internet mailing list
Early digital computing technologies
1960
Widespread color TV capability
1941
First television ad Bulova Watch
1939
First all-electronic TV RCA
One-third of radio shows have commercial sponsors
1935
First radio network RCA
1926
1921
First radio station
Majority of production moves to factories
1890
Industrial Revolution under way (mechanization
and mass production)
1880
c. 1450
Printing press invented
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History in perspective...

• Rates of diffusion Time to reach 50 million U.S.
  homes (Morgan Stanley Tech. Res.)

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Wireless Access On The Rise!
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What is the Internet?

• A means of communication
• From one-to-one
• To all sorts of forms

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Spiral of Communications
One-to-One
One-to-One, One-to-Many, Many-to-One
One-to-Many
One-to-Many
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What is the Internet?

• A means of communication
• From one-to-one
• To all sorts of forms
• How is the Internet Different
• Global
• Interactive
• Multimedia
• Dynamic

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Beyond the Bust
TV spot Pets.com
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Who Got Hit The Hardest?
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The Net and e-commerce

• E-commerce definition
• ...activities undertaken by organizations to
  enable and facilitate the buying and selling of
  stuff with paperless, information systems
  technologies..
• Broader than just buying and selling online
• Encompasses marketing activities
• E-Marketing more specific

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eBusiness vs eCommerce vs eMarketing

• eBusiness The process of using Web technology to
  help businesses streamline processes, improve
  productivity and increase efficiencies. Enables
  companies to easily communicate with partners,
  vendors and customers, connect back-end data
  systems and transact commerce in a secure manner.
• eCommerce Any transaction related activity
  completed over a computer-mediated network that
  involves the transfer of ownership or rights to
  use goods or services.
• eMarketing The process of facilitating the
  exchange of products (goods, services, ideas,
  experiences, people, places, properties,
  organizations, information, ideas) via
  computer-mediated networks and related digital
  technologies in conjunction with traditional
  communications to satisfy individual and
  organizational goals.

eBusiness
eCommerce
eMarketing
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Comparison of Activities

• E-Commerce
• Security Issues
• Electronic Payment Systems
• Firewalls
• Purchasing and Support Activities (order
  fulfillment, front-end and back-end systems)
• Internet Marketing
• Legal Issues
• Supply Chain Management
• Tax Issues
• Web server and software tools
• Web hardware, networking
• E-Commerce Strategy Development

• Internet Marketing
• Environmental scanning, needs assessment, and
  market research
• Segmenting, targeting, and positioning
• Developing the Marketing Mix
• Product strategies (e.g., branding)
• Pricing strategies
• Distribution strategies (e.g., e-tailing)
• Promotion (Adv., Personal Selling, Sales
  Promotion, etc.)
• Web Design

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The Internet and marketing

• A marketing review
• Marketing definition
• The process of planning and executing the
  conception, pricing, promotion, and distribution
  of ideas, goods, and services to create exchanges
  that satisfy individual and organizational
  objectives.
• Marketing activities
• Strategic planning
• Marketing management
• Internet opportunities
• Business Strategy
• Channel structure
• Mix implications (4Ps)